What is a central reason monopoly forces are especially strong in sectors dominated by platform businesses?
A. High marginal costs of production
B. Network externalities
C. Patent protections
D. International trade restrictions
Answer: B
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Consider an industry that is in long-run equilibrium. An increase in demand leads to no change in the price of the good. We know that this is
A) a decreasing cost industry. B) a constant cost industry. C) an increasing cost industry. D) not a competitive industry.
Monetary policy affects aggregate demand with a lag. Approximately how long does it take for monetary policy actions to affect aggregate demand?
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
According to the textbook, the evidence indicates that NAFTA has:
A. reduced the employment of unskilled workers in the United States significantly. B. reduced the wages of skilled workers in the United States. C. stopped illegal immigration from Mexico. D. not significantly reduced the employment of unskilled workers in the United States.